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Structural defects, such as heteroatoms or atomic vacancies, are always present in materials and significantly affect their physical properties, in both positive or unwanted ways. Interestingly, defects generate an impressive range of functionalities in many materials, such as catalysis, electrical and thermal conductivity tuning, thermoelectricity, enhanced ion storage, magnetism, and others. These properties enable the use of defective materials in a great variety of technological applications. Here we review the principal properties generated by atomic vacancies in 2D compounds and thin films of transition metal dichalcogenides and the most consolidated methods for their formation and engineering. Eventually, we critically analysed the most important advantages, the limits and the current open challenges. [ABSTRACT FROM AUTHOR]